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Introduction

Feb. 28, 2019, © Leeham News: Embraer’s shareholders this week approved the joint venture between their company and Boeing, moving another step closer to completion expected by the end of this year.

Boeing will own 80% of the new company and have governance control; Embraer will own 20%.

The shareholders’ action comes after a Brazilian court for the fourth or fifth time enjoined the companies from proceeding with negotiations. Higher courts overturned each previous injunction and will likely do so again.

Global regulatory anti-trust reviews are the step. All decisions are expected by year end.

The KC-390 is the largest plane designed and produced by Embraer. Source: Embraer.

John Slattery, CEO of Embraer Commercial Aviation, gave this take on the pending joint venture in his column on LinkedIn.

Summary

• “NewCo” will be based in Brazil and be responsible for Boeing’s commercial airplanes up to 150 seats.
• A second joint venture is planned for military development.
• The KC-390 is a focus of the second JV.